LOS ANGELES–()–Kilroy Realty Corporation (NYSE: KRC) today announced the purchase of
690 E. Middlefield Road in Mountain View, California, where it will
develop, own and manage a 341,000 square-foot office campus under a
15-year lease for Synopsys, Inc. (NASDAQ: SNPS), the global leader in
electronic design automation.
“This build to suit opportunity with a top technology enterprise,
located in the heart of Silicon Valley, highlights the success of KRC’s
expanding organizational capabilities in high-value West Coast real
estate markets from Seattle to San Diego”
The Synopsys office campus represents KRC’s first ground-up development
project in the greater San Francisco Bay Area and will have a projected
total investment of approximately $200 million. The fully entitled
office project includes two five-story Class A office buildings with
state-of-the-art infrastructure and amenities, designed and
pre-registered to meet LEED Gold certification requirements.
The project is situated in one of the most attractive submarkets in
Silicon Valley, nearby such tech giants as Google Inc., Intuit, Inc. and
Symantec Corporation. In addition, the property is adjacent to
transportation infrastructure with direct, convenient access to both
Light Rail and Caltrain and immediately adjacent to Highway 237.
“This build to suit opportunity with a top technology enterprise,
located in the heart of Silicon Valley, highlights the success of KRC’s
expanding organizational capabilities in high-value West Coast real
estate markets from Seattle to San Diego,” said John Kilroy, Jr., the
company’s president and chief executive officer.
“We’re now actively leveraging the market knowledge and resources of our
enlarged management team and operating platform to extend KRC’s
traditional development expertise into new West Coast submarkets. In
doing so, we are expanding our opportunities to add properties to our
portfolio at investment returns that can be significantly above those
achievable solely through acquisition.”
KRC has been an active developer of commercial real estate for most of
its 60 plus year history, preferring the heightened control over
location, design and amenities, and the potentially higher long term
returns that developing new properties can provide under the right
market conditions.
Historically, KRC has focused its development in economically dynamic
West Coast submarkets with clear long-term demand, habitually limited
supply, and high barriers to entry. Much of the company’s current
development pipeline is focused on coastal San Diego, where, over the
last decade, KRC has established market-leading positions in the
region’s principal coastal submarkets from Del Mar and Sorrento Mesa
east to the I-15 Corridor.
With the completion of the Synopsys office campus, expected in the first
quarter of 2015, KRC’s Bay Area commercial real estate portfolio will
total approximately 3.0 million square feet from Silicon Valley to Marin
County, with 2.1 million square feet centered in San Francisco’s vibrant
South of Market (SOMA) district.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on KRC’s current expectations,
beliefs and assumptions, and are not guarantees of future performance,
results or events. Forward-looking statements are inherently subject to
uncertainties, risks, changes in circumstances, trends and factors that
are difficult to predict, many of which are outside of KRC’s control.
Accordingly, actual performance, results and events may vary materially
from those indicated in forward-looking statements, and you should not
rely on forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in forward-looking statements, including, among others: the
ability to successfully complete development and redevelopment projects
on schedule and within budgeted amounts; risks associated with
investment in real estate assets, which are illiquid, and with trends in
the real estate industry; environmental risks; loss of key personnel;
government regulations; general economic conditions; and the
availability of cash for debt service and exposure of risk of default
under debt obligations. These factors are not exhaustive. For a
discussion of additional risk factors that could adversely affect KRC’s
business and financial performance, see the factors included under the
caption “Risk Factors” in KRC’s annual report on Form 10-K for the year
ended December 31, 2011, quarterly report on Form 10-Q for the quarter
ended March 31, 2012, and KRC’s other filings with the Securities and
Exchange Commission. All forward-looking statements are based on
currently available information and speak only as of the date on which
they are made. KRC assumes no obligation to update any forward-looking
statement made in this press release that becomes untrue because of
subsequent events, new information or otherwise, except to the extent it
is required to do so in connection with its ongoing requirements under
Federal securities laws.
Kilroy Realty Corporation, a member of the SP Small Cap 600 Index, is a
real estate investment trust active in premier office and industrial
submarkets along the West Coast. For over 60 years, the company has
owned, developed, acquired and managed real estate assets, consisting
primarily of Class A real estate properties in the coastal regions of
Los Angeles, Orange County, San Diego, greater Seattle and the San
Francisco Bay Area. At March 31, 2012, the company owned 11.8 million
rentable square feet of commercial office space and 3.4 million rentable
square feet of industrial space. More information is available at http://www.kilroyrealty.com.
Article source: http://eon.businesswire.com/news/eon/20120509006838/en